Airbus S.A.S., a leading aircraft manufacturer just announced that it would establish its first assembly line in the United States. It is a strategic move for the company to boost its ability to compete globally and to meet the increasing needs of its customers in the country.
Airbus S.A.S. is a subsidiary of EADS NV (EPA:EAD), based in The Netherlands.
The establishment of company’s production facility will begin in 2013 and it will be located at the Brookley Aeroplex in Mobile, Alabama. Airbus new assembly line will create more jobs and it will help strengthen the aerospace industry.
According to the company, it will assemble the family of A319, A320 and A321 aircrafts in the new Alabama-assembly line. Airbus expects to start building its aircrafts by 2015 with an average production of of 40 to 50 aircrafts per year.
Fabrice Bregier, Airbus President & CEO said that expanding its operations in the United States in 2013 is the right time. According to him, “The U.S. is the largest single-aisle aircraft market in the world – with a projected need for 4,600 aircraft over the next 20 years – and this assembly line brings us closer to our customers. Mobile is now becoming part of Airbus’ global production network, joining our successful and growing assembly lines in Hamburg, Toulouse and Tianjin.”
On the other hand, Alabama Governor Robert Bently said that Airbus would create 100 stable and well-paying jobs for the state. He said, “When Airbus aircraft take to the skies, our pride and workmanship will soar along with them.”
U.S. Senators Richard Shelby and Sen. Jeff Sessions along with other government officials in the State of Alabama welcomed Airbus announcement. They share the same view that it a great news not only for the state but for the entire United States.
Airbus is the largest export customer for the United States aerospace industry. It has spent a total of $127 billion with suppliers within the 40 states since 1990. Last year alone, the company spent $12 billion and its expenditures has been supporting approximately 210,000 American jobs.
Boeing is the largest domestic producer of Airlines. The Boeing Company (NYSE:BA) and Airbus are arch-rivals, and the dominant players in the industry. Watch to see if Boeing makes a move in response to Airbus invading ‘its turf.’